Fabulous Financials

My favorite bank, USAA, conducted a teen survey called High School Confidential. The survey revealed that teens learn money management skills from what their parents DO, not what they SAY. *shock* Oh, really!? Some of the other survey results might surprise you:

What Teens Said

86% say parents are more helpful than other sources in teaching them about money.

79% of teens wish they knew more about finances.

50% say their parents discuss spending and saving “all the time” or “fairly often.”

49% believe parents share little to nothing about the family’s finances.

41% say their parents regularly fight about money.

61% say they will become millionaires in their 40s or younger.

21% expect to earn $60,000 or more at their first full-time job.

 

What Parents Said

49% of parents confess that their money management skills range from “OK” to “terrible.”

73% say they discuss finances often.

63% say they reveal information about their own finances with teens “a lot” or a “decent amount.”

13% of parents confess that they either spend money as fast as they can get it or are almost always broke.

23% expect to rely “a decent amount” or “a little” on their child for money when they get older.

The stats are a bit disturbing.  Almost half of the teens said their parents fight about money and many of them expect to earn $60k+ with their first jobs. Wow! Even worse, nearly half of their parents lack confidence in their own money management skills and almost a quarter of them will rely on their children for money when they’re older.

Additionally, 79% of teens wish they knew more about finances and 73% of their parents say they talk about it often. Huh? Can you say major disconnect? This further proves the old adage, action speaks louder than words. From my experience with raising a teen, I’ve learned that lectures fall on deaf ears. However, when I lead by example, BabyGirl is more interested in what I’m doing, she gains a better understanding of the message I’m trying to convey, and she’s more likely to remember and apply the lessons to her own life.

Fabulous Tip: With every decision, your children are watching and learning. If you don’t want them to repeat your money management mistakes, change starts with YOU. Avoid the lectures, make better financial choices and lead by example.

[image credit: jupiterimages.com]

Are you prepared for an emergency? I’m not talking about a job loss or injury, I mean a real emergency. An act of God emergency. Another Hurricane Katrina or 9/11. Is your family prepared to go days/weeks without running water, electricity, food, gas, using credit cards, etc.?

It just occurred to me this weekend that BabyGirl and I are not prepared. For reasons still unknown to me, our electricity went out on Saturday night. First thing came to my mind was “shyt, did I pay the electric bill?!” Back in the day, I couldn’t remember. I was known to slip a time or two. LOL But I quickly erased the thought and began playing eye spy private eye. Ya know, slide the mini blinds down very slowly to peek at your neighbors. That’s when I noticed the whole friggin neighborhood was pitch black. WTF!

After about 10 minutes of looking like Rose Holloway on 227, I noticed a line of cars backing up towards my building. Now that really piqued my curiosity. Forget being discrete through the blinds, I opened the damn door. Hmph! By then, I saw about six cars lined up. WTF again! I really didn’t care WHY the cars were lining up, I just panicked. *thinking* “Aww shyt, we ’bouta to get the hell outta here too!” Forget that!

You should have seen my azz stumbling over dog toys, books, remote controls and what not. Pitch black dark, I done dropped the damn flashlight and was trying to find my pants and shoes. I said “BabyGirl, get ya damn coat and come on!!” OMG, just typing this post is hilarious. I’m in tears right now. LMAOOOOOO!! You know black folks don’t need an explanation. When we see a large group of people hauling azz, we just peace the hell out too. Ye’en know! LOL

So we get ready in record time. I’m feeling all uncomfortable because we’re outnumbered in these parts…if you know what I mean. I was prepared to pull an Obi-Juan Kenobi if anybody tried to f*ck with us in the dark. But when I got outside, I felt like a damn fool. Here I am thinking something was going down in the neighborhood and these folks were trying to escape. The cars were lining up because the damn security gate wouldn’t open. *blank stare* I never thought there was a down side to living in a gated community. Then it finally hit me. When the electricity goes out, the security gate ceases to function. Duh! After further inspection, cars were lined up on the inside AND outside of the community. Folks couldn’t get to their own apartments. Damn!

It was pure chaos. Someone had already called the fire department and others were trying to reach emergency maintenance. All reasonable responses, of course, but I’ve never seen so many people under distress over something so minor. This whole experience made me think about how I would have responded if the situation was worse. It made me think about my non-existent emergency planning kit. It definitely made me realize that I better not panic anymore and scare the bejeebus out of my child who will cry uncontrollably because we forgot the dog in the house.

Sorry Precious, I love ya baby. But when it’s going DOOOWN, if BabyGirl forgets to grab ya fluffy azz, you on ya own…dawg. LOL! Sike, I’m just kidding! A little.

Ok, for serious. I went browsing the innanets to learn about emergency kits/plans. During my search, I ran across this post by Blunt Money and she linked to a Red Cross emergency tutorial. It includes an emergency preparedness shopping list based on family size and how many days the supplies are needed. I figured it covers enough of the basics to get started. Here’s another list of must have items that should be in an emergency kit too. Good stuff. Now that I’ve been scared into action, it’s time to start collecting our emergency kit items.

Are you ready for an emergency? What’s in your emergency kit?

[image credit: cityofdearborn.org]

I don’t know about you all but January makes me feel like I have postpartum depression. It’s been nearly 16 years since I’ve delivered a child, but it’s only been three weeks since my purse strings experienced the most traumatic event of the year - holiday shopping.

Now that all gifts have been unwrapped (or returned lol), family has gone home, decorations have been stored away, and everyone is back to the grind at the office, how do you deal with the lingering effects?

I’ll tell you how I’m dealing. It’s the pits and I’m not happy!!

Although I didn’t finance anything with credit card debt, I’m still going through the motions. Being a bad girl, I spent more than I earned in December, so my shopping frenzy threw my budget spend plan out of whack. And from the looks of things, it may be February before things return to normal again. Because of this, I have to delay others things I really want to do. For example:

• I got a new haircut for the New Year and I want my layers highlighted - can’t afford them.
• BabyGirl wants to attend the 2008 Teen Fashion Battle - can’t afford the tix.
• My girlfriend just settled on her first home - can’t afford to congratulate her with a gift.
• My other girlfriend just turned 30 and I’m traveling for her party - can’t afford to buy her a birthday gift.
• My other girlfriends want to hang out and handle grownfolkbidness - can’t afford to buy a decent bottle of wine, a decent restaurant for lunch/dinner, or any other mid-priced event. Only cheap-o activities (read: FREE) for me.

All of this just because I spent nearly $1,000 on gifts last month? Considering everything I have to give up just to get back on track, it makes me wonder if it was really worth it. *sigh* I’m so depressed…

[image credit: bigandtalltshirts.com]

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

If you enjoyed this article, subscribe to Single Ma’s Fabulous Financials via email or RSS feed so you can receive notifications when I publish new content.

I’ve been blogging about personal finance for a little over two years. Therefore, it’s no surprise that I have a bunch of personal finance buddies and I also read a ton of personal finance blogs. Some of them I read because I like their writing style, some I read because I can relate to where they are in life, some I read because they share helpful information, and others I read because I admire their financial stamina.

There is always something I can learn from each and every personal finance blog (magazine article, newspaper article, book, etc.) that I read. However, there aren’t any blogs I read just because I agree with everything the writer says. In fact, there are many financial decisions I’ve made that go against the grain of standard personal finance advice. For example:

1. I saved $10,000 in my emergency fund before paying off debt.
2. The only reason I paid off my student loans early is because I no longer qualified for the tax deduction.
3. When my e-fund is fully funded, it still won’t cover 6 months of my current living expenses.
4. I bought a brand new car that depreciated the moment I drove it off the lot.
5. I did not put 20% down when I purchased my first home.
6. I financed my house with a 5/1 ARM.
7. I do not intend to pay for my daughter’s college education.
8. I include home equity, personal possessions and vested pension in my net worth calculation.
9. I am not frugal: I rarely pack lunch, I rarely plan meals, I hate left overs, I don’t clip coupons, I don’t reuse items for multiple purposes, and sometimes I forget to recycle.
10. I shop A LOT: I like shoes, clothes, jewelry, and designer handbags.
11. I dine out A LOT: I spend more on dining out than on groceries.
12. In December 2007, I spent more than I earned. Oops.
13. I prefer to maximize income than reduce expenses. I find the former to be easier because the latter can only go so low.
14. I despise the ‘anyone can become a millionaire example’: skip something you love for the rest of your life, then invest the $5 you saved for a gazillion years at a rate of a thousand percent per year and you’ll be a millionaire right before you die.
15. I like credit cards and hate cash.
16. Sometimes I give my daughter money just because, she doesn’t always have to earn it.
17. I want to be wealthy so I can help more people and leave an estate to my offspring - not just to retire comfortably.
18. I don’t believe in giving and expecting nothing in return. A thank you goes a long way.
19. I don’t believe in giving anonymously. I’m motivated by recognition.
20. I believe everyone should tithe or donate 10% of all earned income, but as with most things I say, I don’t always practice what I preach.

Whoa! After all of those financial bloopers, admitting that I had a child out of wedlock shouldn’t be so bad then, huh? LOL Go ahead and cast me out the gates…*bracing myself*

My point is, it’ll be ok if you don’t do everything just right. It’s ok if you don’t follow conventional wisdom to the letter of the law. It’s also ok if you don’t agree with everything you read in the world of personal finance - including this blog. When it comes to personal finance, all advice isn’t good advice anyway. At the end of the day, as long as you’re making PROGRESS, you have to do what works for you.

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

If you enjoyed this article, subscribe to Single Ma’s Fabulous Financials via email or RSS feed so you can receive notifications when I publish new content.

Sometimes I save myself from myself in ways that I never imagined. Fortunately, this time, I saved myself a few bucks - but it left me depressed. Now I’m balled up on the couch watching Devil Wears Prada. It’s my next best alternative to retail therapy. That damn Miranda is fierce. Love her! LOL

Anyhoo, I’m not sure if the depression is due to a guilty conscience or (unintended) delayed gratification. You decide…

BabyGirl collected a little Christmas stash, so she asked to go shopping for a pair of black boots. Naturally, I suggested we go to DSW - the shoe mecca. OMG, let me tell you what I saw! Only the most fabulous shoes in the whole wide world! I can’t find a picture but imagine this:

Calvin Klein pumps
3 inches
Burgundy/Wine
Suede with patent heel
Patent design across top with CK buckled logo
$79.98 with 30% off

When I saw my size, I just HAD to try them on. They were fabulous! Ooh and comfy too. Immediately, I decided those babies were going to be mine. Single Ma’s final shoe purchase of the year! Like it was a monumental event or something. Ha! To make sure it wasn’t a complete impulsive purchase, I tried to think of a reason (any reason) NOT to buy them. Unfortunately, my brain wasn’t cooperating. It only gave me reasons why I should.

• You can wear these with the charcoal suit that has burgundy pinstripes.
• You can wear these with the gray suit.
• You can wear these with ALL of your the black suits.
• You can even wear them with jeans if you find a cute sweater.
• These are so fabulous, Mr. Eye Candy will notice them immediately.
• They’re 30% off!

…and the list goes on and on.

Nuttin’ but the devil. Then I turned to BabyGirl. “Honey, give me one reason why I shouldn’t buy these shoes?” I was so preoccupied, I didn’t even realize she was gone. Ha! I was in my zone and forgot that we were shopping for HER. Oops!

When I located my lost spawn (or was I lost?), she wasn’t even thinking about me and my new obsession. So I walked around the whole store wearing them while she shopped. Just tagging along like a good little mommy.

A few minutes later, BabyGirl didn’t find anything she wanted and was ready to go. I would have been too, except that I was still wearing THE shoes. LOL Maaaaan, I didn’t want to take them off. But eventually, I decided to buy them. Then - all of a sudden - a gazillion thoughts came swarming to my mind.

• Even at 30% off, they’re still $55 plus tax.
• You still owe $276 on your credit card bill from Christmas shopping and the statement will close on Jan 8th.
• Your HOA fees went up this year, $475 due on Jan 30th. When you set your rental rate, you didn’t consider this expense so it’s all out of pocket.
• You just spent $75 on a touch up and layers this morning. You wanted a NEW look for ‘08, remember?
• You just spent $258 on car maintenance this afternoon. Now that your baby is paid for, you wanted to keep her in tip top shape, remember?
• You have about $340 worth of medical expenses coming up in January. Ortho bill, paps, BCPs - you know, important ish.
• Don’t forget about BabyGirl’s emergency dental visit from last month. Yea, the $225 you haven’t paid yet. You insisted on a panoramic xray and the insurance rep already told you the PPO will only cover $22. You filed a claim anyway, but you know you’re coming out of pocket for that one. Smarty pants!
• You just loaned your cousin $200 and you have no idea when or if she’ll pay you back. So subtract it from your cash flow and forget about it.

Well shyt!! After all of that, I didn’t even want the damn shoes no mo’!

Hmph!

~*~*~*~*~*~
Work to achieve, not to acquire.
And as always, BE FABULOUS!

If you enjoyed this article, subscribe to Single Ma’s Fabulous Financials via email or RSS feed so you’ll be notified when new articles are published.